Oil Palm Industry Economic Journal Vol. 17 (2) September 2017 p. 34-43

An Analysis of Malaysian Palm Oil Exports to Selected TPPA Member Countries

Nur Nadia Kamil*; Balu, N*; Nazlin Ismail*; Kamalrudin Mohamed Salleh* and Ain, H*
Received:    Accepted:    Available Online:


Malaysia officially signed the Trans-Pacific Partnership Agreement (TPPA) in February 2016. The trade partnership between Malaysia and 11 other participating countries is expected to enlarge Malaysian trade volume and consequently help the country leap-frog towards becoming a high income nation. A study to assess the potential economic impact of TPPA on the Malaysian economy has been done, but none on an in-depth empirical analysis of its impact on the Malaysian palm oil industry. This ex-ante study shows that the Malaysian palm oil industry will gain via TPPA. The elimination or reduction of trade barriers offered under TPPA will allow Malaysia to expand her palm oil market share internationally. The largest export increment due to TPPA was found in the study to be in the palm oil exports to Mexico, followed by Canada. However, no significant change was found in the exports of palm oil to Peru and the United States of America as both countries have currently imposed zero import duties on processed palm oil from Malaysia.

Keywords: TPPA, economic impact, Malaysian palm oil

About Post Author


* Malaysian Palm Oil Board,
6 Persiaran Institusi,
Bandar Baru Bangi,
43000 Kajang, Selangor,

E-mail: nadiakamil@mpob.gov.my